Minnesota approves new payment rates for home health services effective January 2026

On April 1, 2025, the Minnesota State Legislature introduced Senate Bill 476, a significant piece of legislation aimed at enhancing home care services for residents across the state. The bill seeks to address critical gaps in home health care by establishing new provisions for care evaluations and increasing reimbursement rates for various home care services.

One of the bill's primary objectives is to ensure that care evaluations, which are essential for assessing the needs of service recipients, are adequately covered under the state's medical assistance program. Specifically, the bill stipulates that care evaluations can be conducted by appropriate therapists when a service recipient's plan of care involves only home care therapy. Additionally, these evaluations must be performed by registered nurses during specific visits, such as start-of-care or recertification visits. This provision aims to enhance the quality of care provided to individuals receiving home health services.

Another key aspect of Senate Bill 476 is the proposed increase in payment rates for home health agency services, home care nursing, and homemaker assistance. The bill mandates that the commissioner of human services increase these rates by a specified percentage from the rates in effect as of December 31, 2025. This increase is intended to ensure that home care providers are fairly compensated, thereby improving the sustainability of home care services in Minnesota.

The bill is set to take effect on January 1, 2026, or upon receiving federal approval, whichever occurs later. The commissioner of human services is tasked with notifying the revisor of statutes once federal approval is obtained, indicating the bill's reliance on federal guidelines for implementation.

While the bill has garnered support for its potential to improve home care services, it has also sparked debates regarding the financial implications for the state budget and the sustainability of increased reimbursement rates. Critics have raised concerns about the long-term viability of funding these enhancements, particularly in light of existing budget constraints.

Experts in the field of health care have expressed cautious optimism about the bill's potential impact. They argue that by improving reimbursement rates and ensuring comprehensive care evaluations, the legislation could lead to better health outcomes for vulnerable populations, including the elderly and individuals with disabilities.

As Senate Bill 476 progresses through the legislative process, its implications for Minnesota's home care system remain a focal point of discussion among lawmakers, health care providers, and advocates for individuals requiring home health services. The outcome of this bill could significantly shape the landscape of home care in Minnesota, influencing both the quality of care and the financial stability of service providers in the years to come.